Friday, 18 October 2013

Eric Pickles plans greater regulation of private rented sector

The
Government has unveiled a package of proposals to improve regulation of the
private rented housing sector, including establishment of a tenant’s
charter.

Communities Secretary Eric Pickles is planning to force letting and property management
agents to join a compulsory redress scheme, ensuring independent investigation
of poor service and increasing the likelihood of compensation for badly treated
residents.

Launched
in response to a Communities and Local Government (CLG) Select Committee report
into the private rented sector, the Government’s list of proposals includes
publication of a code of practice setting standards for property management.

Pickles
said that while he did not want to start ‘strangling’ the private rented sector
with red tape, proposals would ‘sharpen the tools’ available to tenants and
councils.

A
new tenant’s charter will provide information for residents on what they can
expect from their rental deals and highlight where action can be taken against
hidden fees or poor standards.

Landlords
could also be able to offer longer tenancies of three years or more following
the introduction of a model tenancy agreement.

Pickles
said: ‘Tenants deserve better value for money, and dodgy landlords should be
under no illusion they can provide a shoddy service with impunity.

‘These
measures will also give tenants the know-how to demand longer-term tenancies
that cut costs and meet their needs - and when things do go wrong, the
confidence to take action without fear of eviction or harassment.’

While
supporting the proposals, Clive Betts, chair of the CLG
Committee said it was ‘regrettable that the
Government [had] declined to give local authorities the powers and freedom they
need to improve housing in their areas.’ Source

LocalGov.co.uk

Meanwhile earlier today it was announced that Rents have risen to record levels Rents across England and
Wales hit record levels in September, with the average price paid by private
tenants hitting £757 a month, according to research from property firm LSL Property Services .

• Average rents across England and Wales hit highest level ever recorded – at £757 per month

• Since September 2012 average rents rise 2.1%, up 1.8% over month since August

• On a monthly basis, tenant finances feel impact, with total late rent up by £31 million

Rents across England and Wales have overtaken all previous records, according to the latest Buy-to-Let Index from LSL Property Services plc, which owns the UK’s largest lettings agent network, including national chains Your Move and Reeds Rains and local agents like Intercounty and The JNP Partnership.(full details here)